COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 12 – COMMITMENTS AND CONTINGENCIES

Legal Matters

From time to time, the Company is a party to various legal or administrative proceedings arising in the ordinary course of our business. While any litigation contains an element of uncertainty, we have no reason to believe the outcome of such proceedings will have a material adverse effect on the financial condition or results of operations of the Company.  

Leases

For the nine months ended September 30, 2020, lease expense was approximately $243,000 inclusive of short-term leases.

The lease related balances included in the Condensed Consolidated Balance Sheet as of September 30, 2020 were as follows:

Assets:
Current portion of operating lease ROU assets - included in other current assets	$	151,817
Operating lease ROU assets – included in other Assets		69,909
Total operating lease assets	$	221,726

Liabilities:
Current portion of ROU liabilities – included in accounts payable and accrued expenses	$	146,928
Long-term portion of ROU liabilities – included in other liabilities		70,532
Total operating lease liabilities	$	217,460

The weighted average lease term is 1.8 years and weighted average discount rate used in the calculations were 13.55%.

The following table presents the maturity of the Company’s operating lease liabilities as of September 30, 2020:

Remainder of 2020	$	57,100
2021		130,261
2022		49,716
Total operating lease payments		237,077
Less: imputed interest		(19,617	)
Total operating lease liabilities	$	217,460

The Company leased approximately 2,100 square feet of office space in Plantation, Florida for approximately $2,700 per month. The Company terminated its lease and all obligations under the lease were met.

The Company terminated its office lease in Alpharetta, Ga. in March 2020 and all obligations under the lease were met. 

Additionally, the Company rents office space in Long Beach, New York. The agreement is month to month and can be terminated on 30 days’ notice. The agreement is between the Company and Bridgeworks LLC, an entity principally owned by Mr. Beck, a member of the Board of Directors. Monthly rent was $5,000 per month through September 30, 2020 and will be reduced to $2,500 per month beginning October 1, 2020.

The Company leases an office location in Bogota, Colombia. In April 2017, MultiPay S.A.S. entered an office lease beginning April 22, 2017. The lease cost is approximately $8,500 per month with an inflation adjustment after one year. The lease is automatically extended for one additional year unless written notice is provided at least nine months in advance. The Company extended the lease through April 2021. Furthermore, the Company leased an apartment at approximately $2,000 a month for one of the management team which has now been terminated.

The Company also leases space for its operation in South Africa. The current lease is through June 30, 2022 and the approximate monthly rent is $8,000.

On May 22, 2020, the Company and Mr. Beck entered into a separation letter agreement, which provided payment to the Mr. Beck of one year’s severance in the amount of $350,000 as well as certain employee benefits, payable in accordance with the terms of Mr. Beck’s Retention Agreement. The amounts recorded in connection with the aforementioned agreement are accrued in accrued payroll and related obligations.